FLORIDA PUBLIC SERVICE COMMISSION WORKSHOP ON IMPROVING FLORIDA'S ELECTRIC INFRASTRUCTURE JANUARY 23, 2005

TOWN OF PALM BEACH PROPOSED UNDERGROUNDING BILL

PRESENTER: ROBERT SCHEFFEL WRIGHT

INTRODUCTION

I. How We Got Here

II. Senator Jeff Atwater Will Introduce This Bill

KEY FEATURES OF THE BILL & RATIONALE

I. ESTABLISHES UNDERGROUND AS THE PRESUMPTIVE STANDARD OF SERVICE

II. ENCOURAGES THE PSC AND IOUs TO PROMOTE AND ENCOURAGE UG CONVERSIONS TO THE MAXIMUM EXTENT FEASIBLE

III. REMOVES BARRIERS AND DISINCENTIVES TO MUNICIPALITIES AND OTHER LOCAL GOVERNMENTS PARTICIPATING IN UG CONVERSION PROJECTS

A. Establishes Utility Obligation to Maintain Data and Submit Reports

1. We need to know the relative costs and reliability of UG and OH, including capital costs, O&M costs, and the book values of existing OH facilities, for several reasons, especially for the PSC, utilities, and local governments to make informed decisions about undergrounding.

1 2. We need to know ALL costs and benefits, including the broader public costs, in terms of lost goods, food, medicine, economic value, and the like of outages related to UG and OH systems. This information is needed for the PSC to fulfill its overarching statutory mandate to regulate in the public interest.

B. Provides Fair and Appropriate Credits for CIACs Paid If a Local Government Decides to Purchase Facilities to Establish a Government Utility

C. Gives Local Governments the Opportunity to Install UG Systems Entirely at Their Cost and Own Them, With the Utility Having Sufficient Ownership Rights To Access and Maintain the Facilities

D. Reinstates Municipal Purchase Option in Franchises Pursuant to Arbitration; Give Same Rights to Counties and Special Districts

E. Directs the PSC to Ensure That All Indirect and General "Overhead"- Type Costs Are Appropriately Accounted For and Treated Where Costs Are At Issue Relative to an Undergrounding Project

F. Encourages Competition for the Provision of Utility Construction Services to the Maximum Extent Feasible

G. Encourages the Use of ROWs vs. EASEMENTS

H. Encourage the Use of Existing Rear-Yard Easements, with Appropriate Provision for Utilities to Require That Such Easements Be Kept Clear of Obstructions

CONCLUSION: IT'S TIME FOR ACTION TO REMOVE BARRIERS AND TO ENCOURAGE UNDERGROUNDING.

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